Marks & Spencer Strategic Analysis

Published: 2021-07-06 06:24:31
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Executive Summary:Marks & Spencer being one of the largest retail chains in UK having prominence and fame across gigantic economies in the world plans to expand its business across the globe. Its management continues to strive for the maximum and for that purpose has launched a comprehensive marketing campaign so as to increase its business potential and also pocket maximum financials in comprehensive manner. Owing to tough competitive environment it is relying on skills and competence of high caliber professionals who have joined hands with its management for the maximum and it is notable to mention here the fact that among its key shareholders in particular and others in general it has gained widespread attention and still on the road of progress and developments at rapid pace. Recent surveys in UK have produced amazing feedback that such brand has become top most priority of consumers and even most of industry setups engaged in clothing, luxury and home products and they even recommend the same to others.Introduction and Overview:Marks & Spencer is one of the prominent names in the UK in terms of multinational retail company and same is also listed on London Stock Exchange being one of the prominent and fast growing stock markets in the world. Its head quarter is in Westminster London and part of FTSE 100 Index. It targets home products, clothing and other luxury products which attract consumers at large and owing to its widespread popularity management of such big name has decided to ensure presence across the corners of the world. Since its inception in 1884 now it has grown at massive level and that fact can be analyzed in a sense that it owns now near to thousand stores in the world. During year 2017 it recorded revenue of 10622 million Pounds and profit of 115.7 million pounds and all such figures are enough to justify its market standings and preference among potential customers. Currently many small and large investors are associated with it and even many multinationals are part of such gigantic group and in 1998 it recorded massive revenue of above one billion pounds which not only maintained its position among industry segments but also truly realized mettle and commitment of its management in the long run towards internal and external stakeholders (Grant, R. M. (1999). It is surprising to mention here the fact that in Asia it started its operations in 1960 in Afghanistan and thereafter in 1973 in Canada and in other parts of world so as to pocket customer base and trust of potential investors so as to ensure sustainable position into the world. Company is strongly committed for the well being of its customers and strictly adheres to ethical and environmental policies so that at any stage objection may not be imposed on its policies since it is inevitable for survival into the world in today’s hectic environment.Business Strategy:Marks & Spencer being one of the largest retail chains in the world and presence across the globe continuously strives for excellence and innovation through providing quality products and services in accordance with demands and expectations of valued customers. In this regard comprehensive internal and external analysis of the company can be done under the following manner:External Analysis of Company:Marks & Spencer being one of the recognized names in retail products and other aspects related to organization has ensured sound presence across the corners of the world. Its external environment can be assessed under the following manner in light of Porter’s Five Force Model:It belongs to products and services in range of retail products and other customer products in accordance with the requirements of customers and in this regard its expansion belongs to all of the corners of the world since it is one of the recognized names into the world. Apart from that fact it has sound presence among its competitors and industry segments which truly recognize the fact that such brand has massive recognition and acceptance across the corners of the world.Various buyers and other groups are also present in the industry to which Marks & Spencer belongs and these have the potential to compete with it. Products which are offered by these competitors are also in a position to pose threats to products and services offered by Marks & Spencer.Being a UK based brand into the world it offers a wide variety of opportunities and threats to various its stakeholders which also realize its ability to prevail into the world. New entry into the market poses threats to existing businesses and these may be in the form of new products and services. Under such model such analysis possesses pre dominant significance for strategists of Marks & Spencer.Company has experienced massive profits during last financial year which is able enough to justify its market potential and credibility among customers and operational and administrative aspects are in a position to determine its profitability. To some extent it can be revealed that profits of the company are consistent with industry practices. Other competitors are in a position to compete it but not at substantial level in view of its sound market base.Products which are offered by such organization have sound attraction among the customers and threats of substitute and new entrants for Marks & Spencer are also at negligible level since its market potential is at massive level as compared to its competitors.Recently company has also introduced new products in view of changing patterns prevailing across the corners of the world and same prove instrumental in reshaping its potential to adjust to new environment. In near future its management has mindset to extend business towards Asian and other territories and these are positive aspects on part of Marks and Spencer.Owing to tough competitive environment it is relying on skills and competence of high caliber professionals who have joined hands with its management for the maximum and it is notable to mention here the fact that among its key shareholders in particular and others in general it has gained widespread attention and still on the road of progress and developments at rapid pace. Industry to which it belongs is very much versatile and possesses ability to introduce products and services overnight and thus pose challenges for even well established entities. Recent surveys in UK have produced amazing feedback that such brand has become top most priority of consumers and even most of industry setups engaged in clothing, luxury and home products and they even recommend the same to others.Such model has tried to explain the fact that only around five forces businesses revolve which can never be considered as true at all since other aspects are also vital in nature for existence and success in business environment at large.Such model has although explained all of the aspects in relation to five force model in a well organized manner but does not mention aspects related to priority for each of these elements in model since all aspects can never be equal at all in terms of significance. Pricing mechanism and demand elements of customers have also been explained in a very comprehensive manner.Such model has ignored all of the industry trends that prevail into the world and in relation to industry to which Marks and Spencer belongs since these also form basis for decision making in terms of pricing and product differentiation for long term benefits of an organization.Changes that occur across the corners of the world have also been ignored at all which are considered as repetitive or cyclical in nature and affect business of Marks and Spencer at massive levels. It also targets framework under which it is mentioned that industry is either feasible or not instead of providing choices to business owners to move for feasible or enhance areas that need improvements for the business and vice versa.Currently many small and large investors are associated with it and even many multinationals are part of such gigantic group and in 1998 it recorded massive revenue of above one billion pounds which not only maintained its position among industry segments but also truly realized mettle and commitment of its management in the long run towards internal and external stakeholders. Apart from that aspect Porter Five Force Model also lays stress on the fact that business is always in a sense of competition at sole level instead of the fact that many owners adopt policies on long term basis which in advance tackle changes and reforms happening in the industry and at world level at large.Internal analysis of Marks and Spencer:Marks and Spencer can be analyzed in the following manner owing to presence of various factors embedded in it and these can be summed up in the following manner:Financial resources:Company enjoys sound financial resources being one of the largest multinational retail chains in the world and its financial strength can be judged from the fact that it enjoyed near to 10000 million pounds profit during 2017 and such massive figure is enough to cement its market base and credibility among various stakeholders at large. As per VRIO capabilities exist in view of profitability and other prospects prevailing into an organization that enable business of Marks and Spencer to adjust to changing business environment.Human resources:Marks and Spencer enjoys sound human capital and it also includes skilled and competent team members having renowned qualifications and exposures across the corners of the world. For managing various aspects of an organization it has to target areas like payroll, professional development, human resource management, training and specialization and other areas which are considered as part and parcel of today’s business environment at large. Capability of Marks and Spencer as per VRIO are able enough to compete with other competitors and same is also on favor side for the business of Marks and Spencer.Business recognition:Marks and Spencer enjoys a sound repute across the corners of the world and its credibility can be judged from the fact that it has retail outlets of near to 1000 in the world and also it is in the process of expansion and adding more and more products and services for its valued customers just to ensure its image and market base apart from the fact that it is inevitable for survival and sustainable position among industry segments and professional circles. Capabilities of business are at cheap rates applicable to its policies and aims as per VRIO and same are much detrimental for its products and services.Learning and Development:Management of Marks and Spencer continuously believe in the fact that in today’s competitive environment without learning and professional development of human capital from top to bottom it is not possible to achieve maximum output at large and in view of these aspects also being among largest retail chains in the world it targets on regular basis learning and development of its employees and others so as to move in line with changing business trends into the world. Since business of such setup covers consumer and domestic products therefore it is also imperative to mention here the fact that without learning and development it is not possible to achieve stupendous progress and developments in highly competitive environment.Location:Currently there are near to 1000 locations in relation to Marks and Spencer and such aspect is very much notable and sophisticated to mention here that in various prominent and rising corners of the world so far it has ensured its wide spread presence and still it is moving on at rapid pace and in near future it will also be able to expand its business operations even to neglected and under developed areas of the world in Africa and Asia so as to pocket more and more customer base and thereby strengthen its market base enormously.SWOT analysis of Marks and Spencer:SWOT analysis of Marks and Spencer being one of the recognized brands in the world can be done in the following manner:Strength:It enjoys sound recognition among valued customers across the corners of the world and even in streets of UK it is considered as preferred and recognized brand which delivers quality products and services at rapid pace. It also offers wide variety of products to its customers who include Canary tomatoes, avocados, English apples; pre prepared fruits, salads and vegetables and as a whole massive number of suppliers and intermediaries are operating on part of Marks and Spencer in the world.Weaknesses:It is common perception among wide variety of customers that such brand does not target at substantial levels new trends and changing dynamics of the world in terms of customer’s demands and expectations. It is also believed that its competitors like Primark, River Island and New Look are moving far away from it in reforms and innovations for valued customers which can prove severe blow for its market existence since it has shown few or little concern towards innovations and creativity during last decade and such aspect is very much stressful for its strategists and top management.Opportunities:Marks and Spencer being one of the oldest market brands now enjoys countless opportunities and growth prospects and such factors matter a lot in particular in the context of its management’s will to ensure wide spread presence across the corners of the world like it has lot to unlock in Asian and African economies where even name of such brand is still not known.Threats:Since Marks and Spencer is part of highly competitive environment of UK and its competitors like Sainsbury and Tesco Express are expanding their market base at rapid pace but apart from that such brand is still relying on mega stores and such aspect is very much stressful in view of changing dynamics prevailing across the corners of the world.Ethical assessment of strategy:Human rights are fundamental beliefs which form the basis for dignified and unique recognition among formal and informal circles. These lead to freedom of life, liberty, security and health and also access to other provisions of life and in the context of UK society in particular from where Marks and Spencer started its operations such aspects possess pre dominance in a very profound manner since in today’s business world merely profit making is not considered as enough just by selling of products and services across the corners of the world. In corporate environment such aspect also plays vital role and also management of Marks and Spencer pays great head towards these for enjoying more and more sustainable position in the world. At Marks and Spencer since 1884 when it was established with the vision to provide home products and other clothing products to its valued customers and services it is still passionate to ensure its commitment and sound base so that in the long run it may rank itself among well established and revamped businesses in the world. Here at Marks and Spencer our ethical policies are supported by UN Human Right to water and sanitation, Children’s rights and business principles, International Labor Organization and also due diligence towards basic human rights at substantial levels. In 1998 for the first time at organization concept of global sourcing principles was introduced and later it was implemented at all in letter and spirit by keeping in view concerns for global suppliers and environmental standards in accordance with ethics (Quinn, J. B., & Hillmer, F. G. (1995). It also adheres to UK’s modern slavery act and strictly avoids any sort of flexibility in relation to slavery and suppression of basic human rights of labor. Our organization also follows concept of ethical auditing so as to highlight and check any acts that may be against human rights and other aspects prevailing internally here at Marks and Spencer. Management of company also targets human rights and in this regard in 2016 it officially published insight in relation to locations owned and managed by organization for food and clothing activities in UK.Evaluation of Strategy:Strategies which have been adopted here at Marks and Spencer can be analyzed in the following manner:Publishing of reports by the company in 2016 and 2017 clearly indicates the fact that management of Marks and Spencer is very much adhesive to human rights and values such aspect at substantial level internally and it is very much appreciable for corporate setup which is running business operations at massive level.Organization also adheres to UN charter for human rights and same has been justified by its commitment and will since it is also inevitable in view of challenges posed to it by social and cultural values and competitors prevailing in the world.Concern towards ethical auditing and also social and moral values for human capital while being part of organization are indeed worthy aspects which clearly demarcates the difference for it from the rest in prominent manner.Here at Marks and Spencer management of an organization is committed for investigation of any identified breaches from work ethics and standards adopted in the industry and recommended by regulators and also put solutions to these accordingly so as to maintain a sound position among industry segments at all.It also strongly believes in collaboration with others for support and protection of human rights in corporate environment either in collaboration with other industries or even regulators and such aspect is quite evident from its policies and commitment as evident from available facts and figures at large.Recommendations and Conclusions:Marks & Spencer is one of the prominent names in the UK in terms of multinational retail company and same is also listed on London Stock Exchange being one of the prominent and fast growing stock markets in the world. Its head quarter is in Westminster London and part of FTSE 100 Index (Rafuse, M. E. (1996). It targets home products, clothing and other luxury products which attract consumers at large and owing to its widespread popularity management of such big name has decided to ensure presence across the corners of the world. As per Rumlet strategies of Marks and Spencer covers four aspects and these are consistency in policies of an organization and consonance which reveals that its management is well aware with external trends. Feasibility and advantages of these strategies correlate to each other at comprehensive levels.References:{1} Collis, D. J., & Montgomery, C. A. (1999). Competing on Resources: Strategy in the 1990s. In Knowledge and strategy (pp. 25-40). {2} Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization studies, 24(3), 403-441. {3} Quinn, J. B., & Hilmer, F. G. (1994). Strategic outsourcing. 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